With the beginning of the new year 2025, now is the right time to invest in Fixed Deposit (FD). The Reserve Bank of India (RBI) may cut the repo rate in the coming months, which may reduce the interest rates on FD in future. At present many banks, be it small finance banks, private banks, or public sector banks, are offering attractive interest rates to investors.
Let us know which banks are offering the maximum interest rate and for what period.
FD rates of small finance banks
The interest rates on FD of small finance banks are higher than other banks. These banks are offering high returns for their different tenure schemes.
| bank name | interest rate (%) | Duration (days) |
|---|---|---|
| Northeast Small Finance Bank | 9.00% | 546 to 1111 days |
| Unity Small Finance Bank | 9.00% | 1001 days |
| Jana Small Finance Bank | 8.25% | 1 to 3 years |
| Equitas Small Finance Bank | 8.25% | 888 days |
| Suryoday Small Finance Bank | 8.60% | 2-3 years |
| AU Small Finance Bank | 8.00% | 18 months |
| Ujjivan Small Finance Bank | 8.25% | 12 months |
| Utkarsh Small Finance Bank | 8.50% | 2-3 years; 1500 days |
| ESAF Small Finance Bank | 8.25% | 2-3 years |
special tip
Small finance banks are giving high returns on long term FDs. If you can trust small banks, it may be beneficial to invest in these banks.
FD rates of private banks
Private banks are offering competitive rates on their FD schemes. Their target is mainly mid-term and short-term investors.
| bank name | interest rate (%) | Duration |
|---|---|---|
| Bandhan Bank | 8.05% | 1 year |
| DCB Bank | 8.05% | 19-20 months |
| RBL Bank | 8.00% | 500 days |
| IDFC First Bank | 7.90% | 400-500 days |
| IndusInd Bank | 7.99% | 1 year 5 months |
| hdfc bank | 7.40% | 55 months |
| ICICI Bank | 7.25% | 15 months-2 years |
special tip
If you plan to invest your money for 1-2 years, then Bandhan Bank, DCB Bank, and RBL Bank can be the most attractive options.
FD rates of public sector banks
Public sector banks are known for low risk and trust. The interest rates on their FD plans may be slightly lower than other banks, but they are leaders in terms of security.
| bank name | interest rate (%) | Duration |
|---|---|---|
| Bank of Maharashtra | 7.35% | 333 days |
| Bank of India | 7.30% | 400 days |
| Bank of Baroda | 7.30% | 400 days |
| Canara Bank | 7.40% | 3-5 years |
| Indian Bank | 7.30% | 400 days (IND SUPER) |
| SBI | 7.25% | 444 days (nectar rain) |
| pnb | 7.25% | 400 days |
special tip
If you prefer to invest in public sector banks, banks like Canara Bank and Bank of Maharashtra are offering higher interest rates for longer tenures.
FD rates of foreign banks
Foreign banks are also offering FDs in India with competitive interest rates. Their focus is primarily on high-net-worth clients.
| bank name | interest rate (%) | Duration |
|---|---|---|
| deutsche bank | 8.00% | 1-3 years |
| hsbc bank | 7.50% | 601-699 days |
| standard Chartered Bank | 7.50% | 1 year-375 days |
special tip
While investing in foreign banks, take special care of their conditions and tax benefits. Options like Deutsche Bank and HSBC Bank are available with higher interest rates.
Benefits of long and short term FD
long term FD
- Advantages:
- Higher interest rates.
- Fixed returns.
- Challenges:
- Lack of liquidity.
- Penalty on premature withdrawal.
short term FD
- Advantages:
- resilience.
- Suitable for quick funding needs.
- Challenges:
- Interest rates relatively low.
Special Tips:
If you want to earn maximum interest before the possible repo rate cut in 2025, invest early. By investing in long term FD, you will get full benefit of the current high interest rates.
